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MARKET NEWS – With the current inflation news, the Fed is unlikely to cut interest rates anytime soon. Here's what that means for mortgage rates.
The mortgage market was calmer than usual in recent weeks, with rates holding steady just below 7% since late January. But prospective homebuyers should brace for some turbulence.
• Inflation rose 3% in January, higher than expected, raising concerns about future rate hikes.
• The Fed is in no rush to cut interest rates.
• Higher inflation = higher borrowing costs, meaning mortgage rates may stay elevated for longer.
Where are rates now?
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For January, U.S. existing-home sales increase for the third straight month, climbing 2.2% to a 10-month high, according to the National Association of REALTORS® (NAR). Month-over-month, sales rose in the South, Northeast, and the West but fell in the Midwest, with all four regions reporting year-over-year gains.
For San Francisco, the Median Sales Price was down 9.7% percent to $1,422,500 year-over-year for single family homes and down 10% to $990,000 for Condo/TIC/Coop properties. New Listings were up 18% percent for both single family homes and Condo/TIC/Coop properties.
Inventory remains tight however, despite supply shortage, home prices continue to rise, with the median existing-home price increasing 6 nation-wide year-over-year.
You can find a full report including additional detail by neighborhood in the link below. If you have any any questions or just to discuss your real estate needs, please feel free to reach out.
Full Market Report - January 2025
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